Taking out a life insurance policy is an effective way of putting your loved ones first. It provides financial stability to your beneficiaries in times of difficulties, whether you’re alive or gone.
When applying for life insurance, your insurer will want to find out about your health status and lifestyle. This information helps them assess the same risks you’re getting cover for correctly.
In this post, we discuss everything you need to know about applying for a life insurance policy. In particular, we will address a common variation known as the non-medical life insurance cover.
Defining Non-medical Life Insurance
Just as the name implies, this is life insurance without a medical examination. The cover is given to you once an insurance provider ascertains that your current health condition is unquestionable. Usually, all you need is to answer simple questions about your health history. This helps your insurer understand the medical conditions you might have had in the past or present.
The opposite of this policy is the medical life insurance policy wherethe insurance provider seeks clarification about your health status from a medical practitioner. Here, you will be subjected to a physical examination once or several times, depending on the depth of your condition.
With non-medical insurance, passing the initial questionnaire test by the insurer is enough to begin processing your cover. Usually, this is only allowed when you have no known underlying medical condition that requires the attention of the provider.
How to Apply for Non-medical Insurance
As with most life covers, the process of applying for a non-medical insurance policy is quite rigorous. Your insurer aims to calculate the risk level that your health status bears on the cover they’re about to give you. As such, make sure you’re frank about any information you provide to avoid undesirable consequences such as the following:
For starters, the insurer will likely refuse to provide cover for an underlying issue that you knowingly left out should a risk occur. Some insurers may also turn down claim requests by you or your beneficiaries if they find out you didn’t furnish them with vital details at the time of applying for the cover. In some cases, instead of paying the claim in full, the provider will only make a partial payment.
What’s important to remember here is that previous medical conditions are not always a hindrance to getting a life insurance cover. Do not hesitate to share this information with your insurer as this enables you or your family to receive the most suitable cover.
Alternative Non-medical Life Insurance Policies
In some cases, previous health issues can block applicants from qualifying for a medically underwritten policy. Luckily, some insurers offer other plans that you can apply if you’re in this situation. A good example is a non-medically underwritten policy, which may provide life insurance for your loved ones.
For this policy, your insurer doesn’t ask you any medical questions to assess your health status. Instead, they offer limited coverage in the event risk occurs since your health history was undeterminable. Put otherwise, they place limits on how much your beneficiaries will receive when you’re gone.
Should you go for a non-medically underwritten policy? It depends. But we recommend the cover if you have underlying medical conditions that hinder you from qualifying for a medically underwritten policy.
But there’s a catch; these types of plans charge higher premiums than their non-medical life insurance counterparts depending on your cover amount. Also, some insurers only cover customers that are between the age of 50 and 80, with these policies usually coming with a 2-year moratorium. This means you can only claim full benefits after this period is over.
Is Non-medical Life Insurance Policy Adequate?
Any life insurance policy, whether medical or non-medical, needs to guarantee the protection of your family when you’re gone. The following tips will ensure that you take out the right policy:
Answer Insurer’s Questions Honestly
We cannot emphasize the importance of this enough. Allow the insurance provider to calculate your risk levels correctly so that your family gets sufficient coverage.
Involve a Medical Practitioner in Answering Some Insurer’s Questions
Make sure you understand your past and present health status properly by involving a medical expert where necessary.
Do you have any other questions that you’d like us to help with concerning non-medical or other forms of life insurance? Please let us know in the comments below.